TCM Notes : 7/16/09

• 3% moves across the indices Wednesday are reconfirming the recent confirmed market uptrend, and they are providing maximum pain for those heavily short. The boys in Boston were snapping up stocks with volume today across the board. We'll have to see if the earnings can continue to impress investors moving forward. JPM, GOOG, and others will report today. JPM will set the tone for the day in the morning. Needless to say Jamie Dimon's commentary and guidance will be relied upon for quotes all day.
• CIT being halted almost got me yesterday. I had an order ticket punched up and was waiting for the pullback to 1.61 for an entry on an afternoon delight trade. Thankfully I got caught up in an email and didn't submit the order. It never came back to 1.61 before being halted, so the order wouldn't have been filled anyway. These are the types of traps that lay in wait when dealing with these special situation plays. Talks have failed with the government and bankruptcy should be upon them by Friday. Will be interesting to see what they do with themselves, and how the common trades once the halt is lifted. My gut tells me that the low of 1.08 is coming fast, and most likely zero by Friday.
• OCN continues to behave properly and sits 5.7% higher from our 12.35/12.40 buys. Looking to add more on any weakness. Earnings are August 6. More than likely I will be a seller of strength that day.
• The UYG position still remains and is beginning to close in on it's continuosly dropping 200dma. JPM is a huge component of the XLF and UYG, so a big move from them today will push the financial etfs higher yet still.